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Hey,
I just converted my family home movies (old super 8 footage with no audio) to a digital file using a canopus converter to import vhs footage into Final Cut Pro. When finished, I exported the file as a Final Cut Quicktime. The footage is roughly 1 1/2 hours and the exported file is 23.5 gigs. I tried compressing the file using an old software called cleaner to compress down to 1 1/2 gigs but the footage became slightly pixelated when viewed in quicktime full frame. I don't mind cutting up the footage into 1-5 dvd's to maintain quality but am at a loss about what software and what settings would be ideal. let me know if you have any ideas and thanks.

If you want to keep the original quality that was imported, then back it up over multiple discs.

If you are using the FCP suite, then you have Compressor which will allow more custom exports. But you could just use the export using Quicktime feature from the file export menu. It will allow you to use many different codecs and control the compression. I made a iMovie Export Guide you might find helpful. It will at least let you recognize where you want to be.